Defence stock engaged in shipbuilding, ship servicing/repair, marine engineering and many more jumped upto 5 percent in the day’s trade upon signing an MoU with a US-based firm for expansion purposes.
Price Action
With a market capitalization of Rs. 35,832 Crores, the shares of Cochin Shipyard Limited were trading at Rs. 1,362 per equity share, up 4.9 percent from its previous day’s close price of Rs. 1,298.50.
What Happened
Cochin Shipyard Limited has entered into a Memorandum of Understanding (MoU) with Seatrium Letourneau USA, Inc. (SLET) for the design and critical equipment for jack-up rigs for the Indian Market. This partnership aims to capitalize on opportunities for Mobile Offshore Drilling Units (MODUs) designed to meet the needs of the Indian market.
About the Company
Cochin Shipyard Limited is engaged in the business of shipbuilding, ship servicing/repair, marine engineering, and providing training, strategic, and advanced solutions. I
As of FY24 Cochin Shipyard Limited has reported a strong order book of ~Rs. 22,000 Crores, the order book breakup consists of Defence work orders 73 percent, Commercial Export orders 17 percent, Commercial Domestic orders 6 percent, and 4 percent from its subsidiaries.
It has a global presence and has delivered its vessels to various countries like USA, Germany, Netherlands, Norway, Denmark, and the Middle East.
The Key Shipbuilding clients of the Cochin shipyard on the domestic front include the
Indian Navy, the Indian Coast Guard, the Ministry of Home Affairs, the Shipping Corporation of India Limited, Lakshadweep Government, various Port Trusts, and many More.
Financials and Ratios
Its revenue from operations grew by 13 percent from Rs. 1,012 Crores in Q2FY24 to Rs. 1,143 Crores in Q2FY25, accompanied by profits of Rs. 182 Crores to Rs. 189 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 17.2 percent, and a return on capital employed (ROCE) of 21.6 percent. It has reported a debt-to-equity ratio of 0.09.
Written by: Bharath K.S
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